National mortgage default rates kept on dropping in January, albeit marginally, according to data released by S&P Dow Jones Indices and Experian for the S&P/Experian Consumer Credit Default Indices.
The first mortgage default rate was 1.26% in January, slightly down from 1.27% the month prior. In January 2013, the rate was higher, at 1.58%.
The second mortgage posted 0.72% in January, down from 0.76% in December. Comparatively, it was 0.69% in January 2013.
Similarly, the auto loan default rate was 1.11% in January, down from 1.12% in the previous month. The bank card rate rose to 2.99%, slightly higher than its historical low of 2.97% set in October 2013.
The national composite posted 1.34% in January – a marginal decline from 1.35% in December.
David M. Blitzer, managing director and chairman of the index committee for S&P Dow Jones Indices, says that the recent severe weather has played a role in economic activity.
The company reports that retail sales were down and the labor market conditions were mixed in January data. Overall economic activity is still subpar; against this background, consumer default rates have stabilized at levels similar to those seen before the financial crisis.
More data from the report can be found here.
